Page 319 - GFOA Draft 2

BOND ORDINANCE: An ordinance authorizing a bond issue.

BOND RATING: Designation of the quality of bonds or notes issued by state and local governmental
units. Ratings are provided by agencies or corporations that seek thereby to render a professional
judgment concerning the quality of the security being rated. The City's current bond rating from Moody’s
Investment Services is an Aa3 and from Standard and Poor’s is an AA-.

BOND REVENUES: Revenues, including special taxes, levied or collected for the purpose of providing
for payment of the debt service on outstanding bonds.

BONDED DEBT: That portion of indebtedness represented by outstanding bonds.

BUDGET: A financial plan, for a specified period (usually one year) of operations that matches all
planned revenues and expenditures/expenses with services provided to the residents of the City.

BUDGET CALENDAR: The schedule of key dates which the City follows in the preparation and adoption
of the budget.

BUDGET MESSAGE: The opening section of the budget which provides the City Council and the public
with a general summary of the most important aspects of the budget, changes from the current and
previous fiscal years, and the views and recommendations of the City Manager.

BUDGET RESOLUTION: The official enactment, by City Council, to legally authorize City Staff to
obligate and expend the resources of the City.

BUDGET REVISIONS: A procedure used to revise a budget amount after the budget has been adopted
by the City Council.

BUDGETED FUNDS: Funds that are planned for certain uses but have not been formally or legally
appropriated by the legislative body. The budget document that is submitted for Council approval is
composed of budgeted funds.

CAPITAL IMPROVEMENTS: Expenditures related to the acquisition, expansion or rehabilitation of an
element of the government’s physical plant; sometimes referred to as infrastructure.

CAPITAL OUTLAY (CAPITAL EXPENDITURES): Expenditures which result in the acquisition of
or addition to fixed assets. These expenditures must meet certain criteria.

CAPITAL PROJECTS: Major construction, acquisition, or renovation activities which add value to a
government’s physical assets or significantly increase their useful life. Also called capital improvements.

CAPITAL PROJECTS FUND: The fund used to account for bond proceeds used for the acquisition or
construction of major capital facilities.

CASH: Currency, coin, checks, postal and express money orders, and bankers' drafts on hand or on
deposit with an official or depository designated as custodian of cash and bank deposits. Note: All cash
must be accounted for as part of the fund to which it belongs. It is not necessary, however, to maintain
a separate bank account for each fund unless required by law.

CASH ACCOUNTING: A basis of accounting in which transactions are recorded when cash is either
received or expended.
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